Erste Bank buys back shares for the first time since first trading

Austrian-based Erste Bank EBS bought back 500 own shares during yesterday’s BSE trading session. This is the first buyback operated by the bank since its first day of trading, in February last year.

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Volume and value of transaction were reduced, the company spending some 32,047 lei (7,870 euro) for the operation, at 64.1 lei/share. BSE’s market maker on this range of stocks, Banca Comerciala Romana, was the broker of the transaction.

Since its first day of trading, on February 14 through the end of the year, Erste Bank shares plunged 58%, while in the first days of trading in 2009, it gained 7.4%.

EBS shareholders approved buyback operation in the general meeting on May 6, whereas the shares’ commercial contribution must not exceed 5% of the basic capital of the bank, at the end of each trading day.

Moreover, the shareholders agreed that the participation to bought-back shares should not exceed 10% of the basic capital, and the equivalent value for each bought-back share must not decrease below 10 euros or to exceed 100 euros.